For decades, the U.S. government has been buying wheat from Oregon farmers to help feed people in need around the world.
This wheat is mostly sent through the U.S. Agency for International Development (USAID), which provides food to countries in crisis.
Oregon wheat farmers have benefited from this system for years, as the government’s purchases have given them a stable market and helped maintain wheat prices even when global demand is uncertain.
According to Amanda Hoey, CEO of the Oregon Wheat Growers League, Oregon farmers have been key players in international food aid.
Their wheat has reached over 150 countries, showing the generosity of American farmers. But now, this long-standing relationship is under threat.
President Donald Trump has ordered a freeze on foreign aid programs, which includes halting USAID’s food purchases. This move has left many Oregon wheat farmers worried about the future.
The Local Impact on Oregon Wheat Farmers
Oregon’s wheat industry is significant. In 2023, farmers harvested over 40 million bushels of wheat, worth $266 million.
Most of this wheat is exported, especially to Asian countries, where it is used in specialty foods like sponge cakes and noodles.
But having the U.S. government as a reliable buyer has been crucial for farmers. It has provided a safety net during uncertain times, such as when global markets were affected by events like the war in Ukraine.
The sudden pause in government purchases is now causing concern among local farmers. Daniel Jepsen, a fourth-generation farmer from Ione, Oregon, is one of them.
He has always been ready to face challenges, from bad weather to rising costs. But losing a major buyer like the U.S. government is different.
He fears that if government orders don’t resume soon, local wheat prices might drop, affecting his farm’s income.
Craig Reeder, another wheat farmer from Hermiston, agrees. He explains that the demand from government purchases helped keep wheat prices stable.
Without it, farmers might be forced to make tough decisions, like cutting jobs or growing different crops to stay profitable.
Uncertainty and Market Reactions
Despite these worries, not all farmers believe the situation is dire. Some point out that wheat prices have gone up recently, suggesting that traders are not yet panicking about the drop in government orders.
Also, government wheat purchases have been decreasing over the years, so farmers have been gradually adapting to less federal support.
Andre Rauch, a partner at Starvation Farms, feels uncertain but isn’t overly worried just yet.
He says the market hasn’t shown a big reaction, and no one knows how long the freeze will last. His approach is to wait and see how things unfold before making any big changes.
Still, others worry that even a small drop in demand could hurt them.
Many Oregon farms operate with thin profit margins. Jepsen, who employs just one full-time worker, says that if prices fall, he might have to send his employee home early some days to save on overtime costs.
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A Waiting Game for Farmers
The U.S. Department of Agriculture recently announced a release of $20 million for certain farmer programs.
But this is just a small part of the total aid that’s currently on hold. Many farmers feel they are stuck in limbo, not knowing if or when the government will resume its international aid purchases.
Brent Cheyne, a wheat farmer from Klamath Falls and former president of the North American Wheat Growers Trade Association, is cautious but hopeful.
He believes the nation’s financial issues need to be fixed, even if it means some pain for farmers. But he also acknowledges that the uncertainty is hard to manage.
Looking Ahead
For now, Oregon wheat farmers can only wait and hope for the best. The next harvest season in July or August will be a crucial moment.
If government orders don’t pick up by then, farmers might face a tough financial situation. Some may need to cut costs, switch crops, or find new markets to stay afloat.
The situation highlights how interconnected global aid programs and local economies are. Decisions made in Washington, D.C., can have far-reaching effects, impacting not just people in need abroad but also farmers in rural Oregon.
Whether or not Trump’s foreign aid freeze will cause lasting damage remains to be seen. But for now, Oregon’s wheat farmers are bracing for whatever comes next.
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